Final
STAFF SUMMARY OF MEETING
SENATE
COMMITTEE ON
AGRICULTURE, NATURAL RESOURCES & ENERGY
Date:
04/27/2005
ATTENDANCE
Time:
11:18 AM
to
12:23 PM
Entz
X
Groff
X
Place:
SCR 353
Hillman
X
Taylor
X
This Meeting was called to order by
Tochtrop
X
Senator
Isgar
Grossman
X
Isgar
X
This Report was prepared by
Timothy Taylor
X = Present, E = Excused, A = Absent, * = Present after roll call
Bills Addressed:
Action Taken:
SB05-228
Oil and Gas Conservation Commission briefing
Amended, Referred to the Committee of the Whole
Briefing Only
11:18 AM -- Senate Bill 05-228
Senator Wiens gave an overview of the bill concerning authorization of the election of the board of directors of a newly-formed water conservancy district.
11:24 AM
Senator Wiens noted the conflict of interest provision of the bill on page 3, lines 22 to 27, and page 4, line 1. Senator Isgar expressed concern about the potential effects of the conflict of interest provision, noting that many water conservancy district board members are often also users of the services provided by the district, and that this could be construed as a conflict of interest under the provision noted in the bill.
11:29 AM
Senator Taylor described his proposed amendment, L.001 (Attachment A), that he believes provides clarification on the bill's conflict of interest provision.
11:36 AM --
Sara Duncan, Denver Water, testified regarding the conflict of interest issue.
11:39 AM --
Tom Morris, Legislative Legal Services, noted that Section 24-18-109, Colorado Revised Statutes (C.R.S.), might apply to the conflict of interest issue for water conservancy districts.
11:43 AM
Senator Wiens said he did not mind if the conflict of interest provision of the bill is removed. Senator Isgar said the issue would be revisited on second reading of the bill in the Senate.
BILL:
SB05-228
TIME:
11:44:06 AM
MOVED:
Tochtrop
MOTION:
Moved to refer SB 05-228, as amended, to the Committee of the Whole. The motion passed 7-0.
SECONDED:
VOTE
Entz
Yes
Groff
Yes
Hillman
Yes
Taylor
Yes
Tochtrop
Yes
Grossman
Yes
Isgar
Yes
Final YES:
7
NO:
0
EXC:
0
ABS:
0
FINAL ACTION:
PASS
BILL:
SB05-228
TIME:
11:44:35 AM
MOVED:
Taylor
MOTION:
Moved amendment L.001 (Attachment A). The motion passed without objection.
SECONDED:
VOTE
Entz
Groff
Hillman
Taylor
Tochtrop
Grossman
Isgar
Final YES:
0
NO:
0
EXC:
0
ABS:
0
FINAL ACTION:
Pass Without Objection
11:47 AM -- Oil and Gas Conservation Commission briefing
Brian Macke, Director of the Oil and Gas Conservation Commission (OGCC), introduced himself and began the briefing. Four OGCC handouts were distributed to the committee (Attachments B - E). Mr. Macke noted that there has been a sustained oil and gas boom in Colorado, and referred to Attachment C, which provides information on the levels of oil and gas activity in the state, and regulation.
11:57 AM
Mr. Macke noted the on-site inspection policy of the OGCC (Attachment D) to help address surface owners' concerns regarding use of their land to access and extract oil and gas.
12:00 PM
Responding to a committee question, Mr. Macke noted the role of the OGCC in conflicts between surface and mineral rights owners, emphasizing that the OGCC would prefer to stay out of private contractual agreements between owners. However, he also noted that there are applicable OGCC rules and regulations that do apply to oil and gas operators on private land not owned by the operators.
12:10 PM
Responding to another committee question, Mr. Macke described OGCC rules that apply to visibility impairment/air quality issues in oil and gas producing areas in the state. He also said that some of the responsibility for reducing visibility impairment falls on the county in which the oil and gas operation is located. Senator Taylor emphasized that he thought the primary responsibility to mitigate visibility impairment should fall on the oil and gas operators in the state, and that the OGCC should be more active in making that happen.
12:17 PM
Mr. Macke noted that directional drilling is one way in which oil and gas operators are attempting to mitigate issues like visibility impairment, and conflicts with surface owners. He said approximately 37 percent of the operating oil and gas wells in the state have been completed through directional drilling.
12:23 PM
The meeting was adjourned.